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Tesla to collaborate with Daimler on an electric Mercedes-Benz

February 15, 2012

It's a safe bet that the Tesla-powered Mercedes-Benz won't be a 1977 450 SEL 6.9. Photo by Davey G. Johnson

While Tesla draws eyeballs with the big claims it makes for the upcoming Model S and the sedan's future crossover derivative, the Model X, the company has been helping to keep the lights on by doing contract work for larger, more established automakers.

The Toyota RAV4 EV is due soon, featuring a Tesla powertrain, and the Smart Fortwo electric drive is already available. The electric Smart cashes in some of the chips from Daimler's investment in Tesla. Apparently the Stuttgart behemoth is pleased enough with the program to commission the Palo Alto, Calif.-based EV manufacturer to aid in the construction of an electric Mercedes-Benz.

The announcement was made during Tesla's fourth-quarter earnings report on Wednesday, less than a week after the Model X was unveiled to the public, summarily racking up a cool $40 million in preorder deposits.